Bunker Review W.09, 2013
The Bunker Review is contributed by Marine Bunker Exchange
Uncertainty over fuel indexes trends on US financial crisis and situation in euro-zone.
There is the sixth straight weekly rise in U.S. crude oil stockpiles by 1.1 million barrels in the week to Feb. 22. Stocks at 377.5 million barrels are the highest since last July and are the most on record for this time of year since EIA data began in 1982. Increasing refinery operations could signal rising demand for crude to turn into gasoline and other fuels.
Losses were limited this week by U.S. Federal Reserve Chairman Ben Bernanke's defense of the central bank's bond-buying stimulus program in Congressional testimony on Feb.26. Bernanke's testimony was seen as supporting the economic recovery, which is tied to oil demand.
Meanwhile, investor attention is shifting back to the impending spending cuts in the United States as Republicans and the White House fail to reach an agreement. Republicans want to replace the across-the-board sequester cuts by finding other more-targeted spending reductions. But congressional Democrats have put forward a $110 billion plan that includes not only spending cuts but also tax increases, which are opposed by Republicans. If the U.S. Congress doesn't act before a March 1 deadline, automatic spending cuts known as sequestration will take effect. These concerns still weighed on oil and equity markets.
China, the world's second-biggest oil consumer after the U.S., is sending mixed signals. China's crude oil imports rose in January by a healthy 7.4% from a year earlier, but early indications show manufacturing activity dropped in February to a level that barely indicates a growing economy.
In Europe, uncertainty over the outcome of Italy's election created doubts about prospects for economic reforms. Elections haven't offered any group a clear majority in the country's senate. Italian party chiefs began jockeying to forge a coalition of rivals and head off a second vote. A political stalemate in the country could halt reforms needed to spur growth and help Italy cut its massive 2 trillion euro debt pile, dragging oil and other industrial commodities lower.
One of the most important geopolitical factors this week was talks in Kazakhstan between world powers and Iran. World powers are seeking a deal to curb the country's nuclear program, which they say may have a secret military dimension, in return for the removal of economic sanctions imposed to punish Iran for illicit atomic work. However, two days of talks ended without agreement on the issue. It is expected that technical talks will be held further in Istanbul on March 18, and political discussions with international negotiators will resume in Almaty on April 5-6. Lingering concerns over a supply disruption from the Middle East will continue supporting oil indexes.
All in all, oil markets are still tied to the global economic outlook, as weak growth results in sagging demand for oil products worldwide.
For the coming week expect marine bunker prices to be irregular.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2013-02-28 |
606 |
637 |
|
Rotterdam 2012-02-28 |
700 |
745 |
|
|
|
|
|
Gibraltar 2013-02-28 |
636 |
687 |
|
Gibraltar 2012-02-28 |
730 |
779 |
|
|
|
|
|
St Petersburg 2013-02-28 |
550 |
610 |
|
St Petersburg 2012-02-28 |
465 |
645 |
|
|
|
|
|
Panama Canal 2013-02-28 |
632 |
717 |
|
Panama Canal 2012-02-28 |
740 |
- |
|
|
|
|
|
Busan 2013-02-28 |
659 |
848 |
|
Busan 2012-02-28 |
759 |
- |
|
|
|
|
|
Fujairah 2013-02-28 |
640 |
760 |
|
Fujairah 2012-02-28 |
745 |
- |
All prices stated in USD / Mton
All time high Brent = $147.50 (July 11, 2008)
All time high Light crude (WTI) = $147.27 (July 11, 2008)
|
Product |
Close Feb. 27 |
|
Light Crude Oil (WTI) |
$92.76 |
|
Brent Crude Oil |
$111.87 |